Accounting for Governmental & Nonprofit Entities
17th Edition
ISBN: 9780078025822
Author: Jacqueline L. Reck James E. Rooks Distinguished Professor, Suzanne Lowensohn, Earl R Wilson
Publisher: McGraw-Hill Education
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Chapter 7, Problem 16.10EP
To determine
Identify the correct answer by solving the amount of long-term liabilities.
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7. Suppose an individual invests $10,000 in a load mutual fund for two years. The load fee entails an up-front commission charge of 4
percent of the amount invested and is deducted from the original funds invested. In addition, annual fund operating expenses (or 126-1
fees) are 0.85 percent. The annual fees are charged on the average net asset value invested in the fund and are recorded at the end of
each year. Investments in the fund return 5 percent each year paid on the last day of the year. If the investor reinvests the annual
returns paid on the investment, calculate the annual return on the mutual fund over the two-year investment period. (LG 17-5)
Suppose an individual invests $24,000 in a load mutual fund for two years. The load fee entails an up-front commission charge of 2.8
percent of the amount invested and is deducted from the original funds invested. In addition, annual fund operating expenses (or 12b-1
fees) are 0.59 percent. The annual fees are charged on the average net asset value invested in the fund and are recorded at the end
of each year. Investments in the fund return 7 percent each year paid on the last day of the year. If the investor reinvests the annual
returns paid on the investment, calculate the annual return on the mutual funds over the two-year investment period. (Do not round
intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))
Annual return
%
Chapter 7 Solutions
Accounting for Governmental & Nonprofit Entities
Ch. 7 - Prob. 1QCh. 7 - Explain the reporting requirements for internal...Ch. 7 - A member of the city commission insists that the...Ch. 7 - Prob. 4QCh. 7 - What is the purpose of the Restricted Assets...Ch. 7 - Prob. 6QCh. 7 - Prob. 7QCh. 7 - When do GASB standards require interfund...Ch. 7 - Prob. 9QCh. 7 - What is meant by segment information for...
Ch. 7 - Prob. 11CCh. 7 - Prob. 12CCh. 7 - Enterprise Fund Golf Course Management. (LO7-1)...Ch. 7 - Prob. 16.1EPCh. 7 - Which of the following would most likely be...Ch. 7 - Under GASB standards, the City of Parkview is...Ch. 7 - Prob. 16.4EPCh. 7 - Which of the following events would generally be...Ch. 7 - Prob. 16.6EPCh. 7 - Prob. 16.7EPCh. 7 - Prob. 16.8EPCh. 7 - Prob. 16.9EPCh. 7 - Prob. 16.10EPCh. 7 - Prob. 17EPCh. 7 - Prob. 18EPCh. 7 - Prob. 19EPCh. 7 - Prob. 20EPCh. 7 - Prob. 21EPCh. 7 - Prob. 22EPCh. 7 - Prob. 23EPCh. 7 - Prob. 24EP
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